Original-Research: ATOSS Software SE (von NuWays AG): BUY

Classification of NuWays AG to ATOSS Software SE

Company Name:	ATOSS Software SE
ISIN:	DE0005104400
Reason for the research:	Update
Recommendation:	BUY
Target price:	EUR 152
Target price on sight of:	12 months
Last rating change:
Analyst:	Philipp Sennewald

Strong Q4 results, yet another beat; BUY

Fridays’ preliminary FY25 figures once again underlined the strength of ATOSS’ recurring revenue engine as well as an improving demand backdrop heading into FY26. In detail:

FY25p group sales increased 10.9% yoy to € 189m (in line with eNuW and eCons), supported by a 28.1% jump in Cloud & Subscription to € 92.7m. Together with maintenance, overall recurring revenues came in at € 132m (+18% yoy), representing 70% of sales, 5pp more than in FY24, thus further improving visibility and scalability. Importantly, demand dynamics continued to recovery strongly in Q4, resulting in a 27% increased Cloud & Subscription order backlog of € 109m, while Cloud ARR expanded 28% to € 101m. This rebound in OI signals easing customer cautiousness and provides sound revenue coverage for FY26. At the same time, Consulting continued to grow moderately (+10.3% yoy), underlining the healthy pipeline and sustained project activity around the installed base. In accordance with management’s strategy, sales from Licenses further compressed to € 8.8m (-35.1% yoy), reflecting the clear focus on cloud and recurring revenues.

Profitability was once again exceptional despite ongoing investments into sales capacity, platform scaling and especially AI as EBIT came in at € 68.1m (eNuW: € 64.7m, eCons: € 64.3m), corresponding to a 36% margin, hereby exceeding the already lifted target of 34% by another 2pp but below FY24 (37%). The slight margin decline should however not be interpreted as operational weakness, as it reflects the aforementioned investments visible in slightly increased R&D (+0.1pp yoy) and sales ratios (+1.3pp yoy). A 40% margin in Q4 supports this, highlighting the earnings power and operating leverage of the business model.
Cash generation and balance sheet strength remain strong although back taxes and higher tax advances weighed on FCF, which came in at € 46.2m (eNuW: € 49.0m, eCons: € 48.7m). This leaves strong strategic flexibility given a net cash position of € 115m although organic growth alone remains sufficient to drive value creation with >50% ROICs.

Looking ahead, management guides for FY26 sales of € 215m (eNuW: € 214m, eCons: € 215m) and an EBIT margin of ≥32% (eNuW: 34.7%, eCons: 33.4%). Although factoring in ongoing growth investments, the margin target looks very conservative, in our view, leaving the possibility of a guidance upgrade in the cards, especially as the increasing share of high margin recurring revenues is driving scalability.

Overall, the FY25 prelims fully reinforce ATOSS’ positioning as a high-quality software compounder, combining double-digit growth, best-in-class margins and exceptional balance sheet strength. Trading at 28.6x FY26e forward PE (vs 5y average of 38.6x), the stock offers plenty upside potential, which is backed by our DCF based PT of € 152 - BUY.
 

You can download the research here: atoss-software-se-2026-02-02-previewreview-en-5121e
For additional information visit our website: https://www.nuways-ag.com/research-feed

Contact for questions:
NuWays AG - Equity Research
Web: www.nuways-ag.com
Email: research@nuways-ag.com
LinkedIn: https://www.linkedin.com/company/nuwaysag
Adresse: Mittelweg 16-17, 20148 Hamburg, Germany
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Diese Meldung ist keine Anlageberatung oder Aufforderung zum Abschluss bestimmter Börsengeschäfte.
Offenlegung möglicher Interessenkonflikte nach § 85 WpHG beim oben analysierten Unternehmen befindet sich in der vollständigen Analyse.
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